Denmark is considered to be in the research phase. However, it is important to note that Denmark has largely scrapped its plans to introduce a CBDC.

CBDC History and Development

In 2016, the Danmarks Nationalbank announced that it was exploring the possibility of issuing a CBDC, referred to as a Danish digital krone or e-kroner. At the time, Danmarks Nationalbank governor Lars Rohde told Bloomberg that the central bank was debating whether or not the CBDC would be anonymous. He further noted that each unit of the CBDC would have a serial number—making it traceable at all times. Rohde concluded the interview noting that the central bank had “more questions than answers.”

In 2017, the Danmarks Nationalbank announced that a CBDC “would not be an improvement of the existing payment solutions in Denmark.” The central bank warned that issuing a CBDC would be in direct competition with commercial banks and lead to financial stability risks. The announcement concluded saying, “The potential benefits of introducing central bank digital currency for households and businesses in Denmark would not match the considerable challenges which this introduction would present. Danmarks Nationalbank therefore has no plans to issue central bank digital currency.”

In 2022, the Danmarks Nationalbank issued a report evaluating stablecoins, wholesale CBDCs, and retail CBDCs. In the conclusion of the report, the central bank largely maintained its position from 2017 stating, “At present, and with the associated costs and possible risks, it is not clear how retail CBDCs will create significant added value relative to the existing solutions in Denmark.” In fact, elsewhere in the report, the central bank said, “It is not clear how a retail CBDC in Danish kroner can contribute to better and more secure access to payments and financial services or to creating more safe and efficient solutions for citizens and society in general.” However, ultimately, the Danmarks Nationalbank concluded that it would continue to monitor CBDC developments in case conditions change.

Human Rights and Civil Liberties Concerns

Denmark earned a 97 out of 100 in Freedom House’s 2023 Freedom in the World report. Even then, however, it’s important to recognize that the creation of a CBDC could open the door to risks to financial privacy and financial freedom.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.